Forex Price Action

Hi guys, anyone looking to go long on these two? My zones correct?


And also we’re not taking this trade since the pinbar didn’t close within the previous?

Just regarding the Eur/NZD my charts don’t show a Pin. But even if they did, scrolling out for a moe why would you want to trade against such a strong trend?

Ideally you want to be looking for pullbacks to get short. there is no need to try and fight these kind of waves when it much easier and far more profitable to hope on when the trend is going your way.



The EURNZD is in the middle for me and not somewhere I would trade from.

The AUDNZD I am still in from the daily trade but that level is better than EURNZD for a 4hr trade.

And no we do not trade Pins that are not pins. You don’t have to ask as every time it does not form correctly you can safely assume no matter how good it looks we are not trading it.

Hope this helps.

I have just made a new article that a lot of people have asked for. It covers the whole subject of trading from the correct areas i,e: only buying low selling high and trading from the correct swings etc. I am not going to add link here to keep mods happy but you all know where you can find it. This will be good now as every week when I find myself answering this question I can simply send them there.

Safe trading all and good week had by most in here!

Johnathon

Hello guys,

look at this chance… the nice PA form at the resistance… take a look bro


regards,
willy

Brother its against the daily trend so wait and be patient.

But Wildanz was talking about 4H-chart, not a daily, on 4H we have a clear down-trend (lower lows + lower highs), on daily up-trend (the other way round), so why do you mix two timeframes?

It’s been pointed here so many times to enter and manage the trade on one TF, and on 4H this would be taking it from a swing high, right?

The most we should be expecting from a PA signal is to get to first trouble area, so what is wrong with this trade idea apart from the bar not being closed at the time of posting! and now effecting in EB not closing in the lower 1/3rd of the bar?

If it closed as a proper BEEB it would be tradeable in my humble opinion…
Could someone throw a bit more light on the above analysis please?

USDCHF H4


Fil.

Although its direct to the support zone. plz see this USDCHF 4HRS


Yeah, but, imo, daily trend should be the priority. For example, I’m drawing all the res/sup lines on daily TF as well as determine the bias of the trend. For me H4 TF is only used for PA signals if I don’t see any on D1 TF. Ofcourse if I enter trade on H4, then I manage it on H4 (S/L and T/P).

Richard

I agree with filipl that the trend in the 4hr is down so you can take that short BUT looking at the Daily, you have to treat it as a retracement down of the daily (BTW, I’m talking about the[B] very near term[/B] trend of the Daily not the primary nor the intermediate), so it is still valid, just be wary that the move to the downside might not be that extended. Just set your TP to the previous high, a little bit lower than the line jui25 posted.

Hi Richard this is exactly how I trade it too. I mark the relevant zones up on the Daily and will drill down to the 4 Hourly if price reaches these zones. I’ve marked out what I see is as the relevant Daily zones. Below:


Now if I then drill down to the 4 hourly price is in the middle of nowhere and certainly not at a zone I’d personally like to play.


Hi Johnathon,

Can you please help to explain time frame issue and illustrate how to trade different time frame? We are here (in this thread) trading mainly 4 hourly and daily time frames which have triggered a lot of discussions and confusions. You have mentioned that we should trade each time frame independently but some how they are closely related.

To me, I agreed with bhops’s method that we use daily time frame (higher one) to determine the S/R levels. If there is no daily PA signal, then we go down to 4 hourly to look for PA signal. Those S/R levels determined at 4hourly time frame shall only be considered as a minor S/R level for marking multiple profit levels (T1, T2…) or stop loss levels.

However, if we trade 4 hourly time frame, the SL, target must be set using 4 hourly perspective otherwise the target may not be reachable if we use the daily one. That’s what I understand by “time frame independence”.

Pls comment on it!

Regards,
Toyogo

Although I think you have pretty much got most of this yourself and although I am not Johnathon here is my take on it.

In using either the 4 hourly or daily to get into a trade we are often using the SAME levels which we have most commonly marked off the Daily chart.

But you are right even if you are using a level marked off the Daily but end up taking a trade off the 4 Hourly we would then chart our targets off what we are seeing on the 4 Hourly.

But lets take the USD/CHF for example, if I do end up taking a trade from the 4 Hour charts wouldn’t it make sense to trade it off a zone that has also got some historical significance on the Daily as well? That just makes it twice as powerful.

I think we do agree on this but I just wanted to enforce what you are saying.

This is my idea about this pair


Any opinions? :53:

Yeah. We don’t use Stochs or Trendlines :18: But hey if you did dabble in those things along with the Bearish Convergence I guess you would be looking to get short.

Hi fedegmail, we don’t really use trend lines to trade from, strong horizontal levels are much better to use. If you place a horizontal level somewhere near the low of the beeb you can see you would be trading right into a support level. Also that ‘beeb’ looks more like indecision to me as it hasn’t closed bearish enough for my liking.
Who knows it may move lower but definitely not a setup I would consider.

Hope this helps
Steve

Eheh of course! I’ve been trading for more than 4 years and I always used indicators and simple patterns such as trend lines, channels, support and resistance etc.
I think I have found the right way to be in profit because this is my 13th positive month, but I want to improve and I want to expand my horizons, so after studying something about price action I’m here trying to combine indicators with price action.
This is my scale of importance:

  1. indicators
  2. price action
  3. fundamental

Hope to help you all and hope to learn something from you :wink:

Thank you Steve, I would have opened a short position looking at my usual analyzes, but I wanted to add a bearish engulfing pattern because it seemed relevant. Do you think trend lines and price action can’t go together?
I have tried this system (tech + PA), I know 2 weeks are very few, I can’t say it works or it doesn’t work… but at least it seems interesting :slight_smile:

Of course they can Fedge! :slight_smile: If it works for you and you find it profitable after 13 months of trading, why not?!

But solely for the purpose of this thread we do not look at trendlines to respect initial OPs request. We try to analyse PA with S/R zones and 2-3 PA candlestick reversal patterns. Simple as that :slight_smile:

PS. Good to have another profitable trader with us!
Welcome.
Fil.

I’m profitable in 13 months in a row with technical analysis, tech + PA is completely new for me (2 weeks of experience) :slight_smile:
So, I will try to avoid indicators and trend lines :wink:
Thanks Fil

No problem, always happy to help where I can :slight_smile:

Of course trend lines can go with price action, i only mentioned that it isn’t something that is practised in this thread or a part of how we trade here, just so new readers of this thread don’t get confused.
At the end of the day we all have the same goal here which is to consistently trade profitably, so don’t change your own plan or analysis because of something I have said, stick to whatever you are doing as you are definitely doing something right! Especially if you are profitable over 13 consecutive months! :slight_smile:

Steve